Safeguarding your company against corporate corruption overseas

SINGAPORE has long been admired for its tough anti-corruption stance and is exemplary for its strict enforcement regime against corrupt practices. In Transparency International's (TI) Corruption Perceptions Index 2016, Singapore was ranked seventh in the world as one of the least corrupt countries, one place higher than its ranking in 2015's index.

Hence, it is not surprising that high-profile corruption cases involving Singapore companies attract close scrutiny both locally and internationally, and more so when a government-linked company is involved. A case in point is the recent disclosure on Dec 23, 2017 by Keppel Offshore and Marine (KOM), a Singapore government-linked company, of its global resolution with the criminal authorities in the United States, Brazil and Singapore to pay more than US$422 million in fines, following investigations into corrupt payments made overseas.

It was reported that KOM made bribes amounting to about US$55 million between 2001 and 2014 in order to secure 13 contracts from Brazilian oil firms. These bribes were disguised as large commissions to a Brazilian consultant, who in turn made payments to people who could influence the awarding of the 13 contracts.